LKNCY Luckin Coffee Inc.

Overview and Growth

Luckin Coffee Inc. generated $7.03B of revenue in fiscal 2025, with net income of $513.88M and an operating cash inflow of $869.37M. Revenue of $7.03B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 48.9% above fiscal 2024 revenue of $4.72B, marking a year-over-year increase. The company reported diluted EPS of $0.20, adding a shareholder-level measure to the absolute income figures considered below. Against diluted EPS of $0.16 in fiscal 2024, the current result was 25.0% higher. Total assets stood at $4.32B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 1.63x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Operating income was $724.05M, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 10.3%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $513.88M for the fiscal year. Measured against reported revenue, net income produced a 7.3% margin after operating costs and the remaining recognized items. Pretax income was $753.63M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 10.7%, relating income before taxes directly to revenue. Income tax expense totaled $239.75M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 31.8%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 23.0%, indicating the profitability achieved on book capital. Return on period-end assets was 11.9%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $4.32B, supported by $1.88B of liabilities and $2.23B of shareholder equity. At period end, current assets of $2.06B compared with current liabilities of $1.21B, defining the company’s short-term resource position. At 1.7x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $327.44M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 27.0% of current liabilities, showing how much near-term coverage came from cash alone. Liabilities represented 43.4% of total assets, quantifying the liability-funded share of the company’s resource base. Cash and equivalents equaled 7.6% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 36.6% from $3.17B in fiscal 2024, leaving current total assets higher year over year. Reported equity changed 41.1% from $1.58B in fiscal 2024, placing the current capital base higher year over year. Compared with $597.74M in fiscal 2024, the current cash balance moved 45.2% and finished lower.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $869.37M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.69x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $374.48M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 43.1% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $494.89M, leaving cash available for debt reduction, shareholder returns, or further investment. Free cash flow represented 7.0% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 11.4% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.